(1) The Department of Human Services, in cooperation with representatives of residential facilities and adult foster homes, shall:
(a) Assess the capacity on January 1, 2008, of residential facilities and adult foster homes to serve residents who qualify for state medical assistance;
(b) Establish targets for expansion of the capacity assessed in paragraph (a) of this subsection in each area of the state; and
(c) Issue a report on changes in capacity on a quarterly basis.
(2) The department shall report semiannually to the Legislative Assembly or the Emergency Board the findings in subsection (1) of this section and any recommendations for legislative action.